Does Best In Class Education Center currently have any purchasing cooperatives established?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
or modification of the policy.
Purchase Agreements
We try to negotiate purchase agreements with suppliers, including favorable pricing terms, for the benefit of franchisees. As of the date of this Disclosure Document, we have negotiated purchase agreements (including favorable pricing terms) with: (a) our affiliate, LBIS, for BCP-LMS; and (b) an optional (but recommended) real estate professional who agreed to review and negotiate a letter of intent and commercial lease for a flat fee of $3,500 per lease (because the lease review protects our interests as well as yours, we pay $1,000 and you pay the remaining $2,500). We may also purchase items in bulk and resell them to you at our cost plus a reasonable markup (not to exceed 5% of our cost to purchase the item and deliver it to you). Currently there are no purchasing cooperatives but we may establish them in the future. You do not receive any material benefits for using designated or approved suppliers other th
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–22)
What This Means (2025 FDD)
According to Best In Class Education Center's 2025 Franchise Disclosure Document, as of the date of the document, there are no purchasing cooperatives currently established. However, Best In Class Education Center states that they may establish them in the future.
Best In Class Education Center does try to negotiate purchase agreements with suppliers, including favorable pricing terms, for the benefit of franchisees. Currently, they have negotiated purchase agreements with their affiliate, LBIS, for BCP-LMS. They also have an agreement with an optional real estate professional who will review and negotiate a letter of intent and commercial lease for a flat fee of $3,500 per lease. Best In Class Education Center pays $1,000 of this fee, while the franchisee pays the remaining $2,500.
Best In Class Education Center may also purchase items in bulk and resell them to franchisees at their cost plus a reasonable markup, not to exceed 5% of their cost to purchase the item and deliver it to the franchisee. While there are no purchasing cooperatives now, the possibility of future cooperatives could offer franchisees additional benefits through collective buying power.